Fractal Breakouts and Alligator Teeth for Trading Zones

Summary

The available portion of this Pine Script strategy combines confirmed price fractals with the Alligator indicator’s teeth, calculated as a smoothed midpoint average with an offset. It tracks the latest upper and lower fractal levels, then makes a level eligible as a breakout trigger when it lies on the corresponding side of the teeth. Crossing an active upper level sets an upward trend state; crossing a lower level sets a downward state. The script also declares an EMA length input, date limits, position sizing, and trading costs, though the excerpt ends before their full use is shown.

The document provides implementation details, not reported performance evidence. Since the source is truncated, entries, exits, stop rules, and any further zone logic cannot be established from the available text. Fractals require bars after the pivot to confirm, and breakout behavior may depend on those confirmation and execution details. No conclusions about profitability or robustness are supported here.

Key ideas

• The script identifies upper and lower price fractals using a two-bar pivot rule.
• It compares the latest fractal levels with a smoothed midpoint average called the Alligator teeth.
• A cross above an active upper fractal sets the trend state upward, while a cross below a lower level sets it downward.
• The supplied source ends before the complete entry and exit rules are visible.
• No backtest results or evidence of profitability are included.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.